Author Question: Suppose Clyde always eats ice cream and chocolate syrup together. If the price of syrup increases by ... (Read 152 times)

V@ndy87 · **on:** Jun 29, 2018

Suppose Clyde always eats ice cream and chocolate syrup together. If the price of syrup increases by 10 percent, and the cross elasticity of demand is -2, the demand for ice cream

A) increases by 5 percent.
B) increases by 20 percent.
C) decreases by 5 percent.
D) decreases by 20 percent.

Question 2

The value of marginal product (VMP) of an input such as labor is the

A) additional output produced by the last unit of an input.
B) total revenue divided by the units of the input employed.
C) extra revenue gained by selling one more unit of output.
D) extra revenue gained by employing one more unit of the input.